What is a “Carbon Neutral” Building?

By Helen Carruthers, BSc, LEED AP and Tracy Casavant, MES, P.Eng. Light House Sustainable Building Centre Society, Vancouver, BC

Globe and Mail, May 10, 2013: “Carbon dioxide Carbon Neutral Buildings in BC: Framework for hits levels not seen for three million years”1 High-Rise Multi-Unit Residential Buildings, in July 2012. The framework consists of defensible, For the past 20 years, governments worldwide have actionable and measurable targets to assist attempted to curtail carbon emissions by introducing municipalities in the development of policy goals policies and regulations; contrary to the expected relating specifically to carbon neutral multi- reduction, there is an alarmingly unprecedented rise residential buildings. in carbon. The report’s definition for carbon neutral building With growing pressure from the public on follows the common theme of the various definitions governments and organizations to address climate attached to carbon-based building policies that have change, the term ‘carbon neutral’ has become emerged worldwide. A carbon neutral building is increasingly used in recent years. Carbon neutral is defined as one with significantly reduced energy an emerging definition that relates to measuring, consumption combined with the increased use of low reducing and offsetting carbon energy used by either carbon energy sources to meet the remaining a building or an organization as a whole. To provide demand. This definition is also consistent with a little background, a popular approach for designing existing BC provincial and municipal regulations, e.g. a carbon neutral building is as follows: City of Vancouver has already established a goal for all new construction to be carbon neutral by 2030. 1. Integrating passive strategies 2. Designing a high performance building There is often a lack of transparency regarding what envelope is meant by different organizations’ usage of the 3. Specifying energy efficient HVAC systems, term. Even when it is well defined, there are lighting and appliances discrepancies between definitions such as the scope of emissions sources included, the targets for 4. Installing on-site reductions of emissions, and the quality of offsets 5. Offsetting used. A carbon neutral definition should include specific information/requirements relating to the following: To help BC municipalities develop policies and regulations relating to carbon neutral  System boundary – includes within it all areas and construction, Light House published: Towards associated with the buildings where energy is used or produced; i.e. operational energy, embodied energy of the materials used, energy used for the construction process and travel for occupants.

 Renewable energy and 3rd party 1 Globe and Mail Published May 10, 2013 certification. http://www.theglobeandmail.com/news/world/carbon-dioxide-hits- levels-not-seen-for-three-million-  Verification or certification of the calculated years/article11874930/#dashboard/follows/ carbon emissions.

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What is a Carbon Neutral Building

This paper presents and discusses some of the key The DECC also provides clarity around the role of international definitions of emissions reduction versus emissions offsetting to worldwide and how they relate to buildings in claim carbon neutrality. Projects should always seek particular. to reduce emissions first, thereby minimizing the emissions that need to be offset. Therefore, a UK Department of Energy and Climate carbon neutral claim consisting only of calculating Change emissions and offsetting should not be made. Carbon neutrality should only be claimed after The UK’s Department of Energy and Climate verified genuine carbon savings have been Change (DECC) has developed a series of achieved, and the claim should clearly report the guidelines surrounding the use of the term carbon remaining amount of emissions required to be offset. neutrality, to discourage “greenwashing” and provide The DECC’s quality criteria for carbon offsets greater clarity around the concept. According to include: avoiding leakage, permanence, validation their definition, “Carbon neutral means that – and verification, additionality, timing, avoiding double through a transparent process of calculating counting, and transparency. emissions, reducing those emissions and offsetting residual emissions – net carbon emissions equal The DECC recommends that results are verified by zero.” 2 PAS2050 (Specification for the assessment of the life cycle greenhouse gas emissions of goods and At a minimum, Scope 1 and Scope 2 emissions services) or ISO 14064 (Specification with guidance should be included in any calculation of emissions. at the organization for quantification and Scope 1 emissions (direct emissions) are those from reporting of greenhouse gas emissions and equipment that is owned or controlled at a building removals) standards. Finally, a claim of carbon scale and that releases emissions straight into the neutrality should always be linked to a particular and atmosphere, such as those from combustion in specified period of time, because doing so will boilers or furnaces on site. Scope 2 emissions ensure the claim is understandable and transparent. (energy indirect) are emissions associated with consumption of purchased electricity, heat, steam EU Energy Performance of Buildings and cooling. While these emissions are released Directive 2010/31/EU3 directly into the atmosphere, they are indirect emissions from the perspective of an individual Rather than carbon neutral buildings, the Energy building as they are produced by sources not owned Performance of Building Directive (EPBD) focuses or controlled at the building scale. on nearly zero energy buildings, requiring that all new buildings must be nearly zero energy by 2020. In addition, the DECC recommends that significant A nearly zero building is defined as one that “…has Scope 3 emissions are also included in calculations. a very high energy performance … [the] very low These include all other associated activities that amount of energy required should be covered to a release emissions from sources that are not owned very significant extent by energy from renewable or controlled at the building scale, and which are not sources, including energy from renewable sources classed as Scope 2 emissions. Scope 3 emissions produced on-site”. The quantitative value of “nearly would reflect sources such as business travel in zero” is left to each member state to define, but is to owned by others. be tied to primary energy demand. However, there is much collaboration between member states, namely through the Concerted Action EPBD mechanism.4

2UK Department of Energy and , “Guidance on carbon neutrality”, 3 Commission Delegated Regulation (EU) No 244/2012 of 16 http://www.decc.gov.uk/en/content/cms/emissions/neutrality/neutr January 2012 supplementing Directive 2010/31/EU. http://eur- ality.aspx lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32012R024 4:EN:NOT 4 http://www.epbd-ca.eu/

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What is a Carbon Neutral Building

Even though this is technically not a definition for  Carbon Neutral - Operating Energy + Site carbon neutral building, the intent is similar to many Energy + Occupant Travel: This definition of of the other carbon neutral building definitions. carbon neutrality builds upon the inclusion of operating energy and embodied energy, and Carbon Neutral Design Project (AIA and also reflects the carbon costs associated with a SBSE) building's location. This requires a calculation of the personal carbon emissions associated with The Carbon Neutral Design Project, a partnership of the means and distance of travel of all the American Institute of Architects (AIA), the AIA employees and visitors to the building. This is Committee on the Environment (COTE), and the referred to as Scope 3 Carbon due to Indirect Society of Building Science Educators (SBSE) was Emissions (organizational travel).” 6 developed in part as a response to the 2030 Challenge, which targets carbon neutral In addition to the requirement of first reducing architecture by 2030. The Carbon Neutral Design emissions associated with building operations, the Project goes one step further than the DCEE, adding Carbon Neutral Design Project also places a embodied energy to the scope of their 3-component maximum on the amount of renewable energy that definition: can be purchased to offset emissions. Unlike the UK DECC, no specific criteria are provided for  “Carbon Neutral - Operating Energy: The carbon credits, and no specific standard or program base definition for Carbon Neutral Design is is recommended for quantification, reporting and taken from www.architecture2030.org. Carbon verification. There is no link to a specific period of neutral with respect to Operating Energy means time for measurement. using no GHG emitting energy to operate the building. Building operation includes ASHRAE Vision 2020 heating, cooling and lighting. These targets may be accomplished by implementing innovative Similar to the Architecture 2030 Challenge, the strategies, generating on-site American Society of Heating, Refrigerating and Air- renewable power and/or purchasing (20% Conditioning Engineers (ASHRAE) have a vision maximum) renewable energy and/or certified that the building community will produce market- renewable energy credits. According to the viable net zero energy buildings by 2030. ASHRAE Carbon Neutral Design Protocol Tool developed defines a net zero energy building as one that for this project, this includes Scope 1: Carbon produces as much energy as it uses when measured due to Direct Emissions, as well as Scope 2: at the site. They further break down the definition Carbon due to Indirect Emissions. It is felt that at using different metrics as follows: the present time, Operating Energy accounts for approximately 70% of the carbon emissions 1. Net zero site energy building – verification associated with a building. through on-site metering and does not distinguish between fuel types.  Carbon Neutral - Operating Energy + Embodied Energy: This definition for Carbon 2. Net zero source energy building – uses site-to- Neutrality builds upon the definition above and source conversions to account for source also adds the carbon emissions associated with energy. energy embodied in the materials used to 3. Net zero energy cost buildings – based on construct the building. A tool such as Athena utility bills Institute’s Impact Estimator for Buildings5 is very useful to determine the associated carbon 4. Net zero energy emissions building – calculates emissions with building material choices. emissions produced by the energy needs of the building

5 Athena Sustainable Materials Institute 6 http://www.athenasmi.org/our-software-data/impact-estimator/ The Carbon Neutral Design (CND) Project, http://www.tboake.com/carbon-aia/carbon_definition.html

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What is a Carbon Neutral Building

Part of the work accomplished to date by ASHRAE As part of the Program, CSA requires that offsets was the development of the Building Energy have been independently third-party validated and Quotient building energy-labeling program. The final verified, and have been purchased from recognized building energy performance label is based on a sources, and refers to ISO 14064 GHG standards for letter grade; a building owner receives A+ for a Zero quantification, reporting and verification. Net Energy building. CarbonNeutral® Canada Council A global firm that provides a gamut of carbon While it has not developed an official definition for or management services defines carbon neutrality, or protocols for verifying carbon neutral building, the having a net zero , as achieving net Canada Green Building Council’s 2012 Strategic zero carbon emissions by balancing a measured Plan has set a goal for carbon neutral buildings and amount of carbon released with an equivalent communities by 2030, consistent with Architecture amount sequestered, avoided or offset. They offer 2030.7 Based on a workshop offered by the CaGBC 3rd party certification of carbon neutrality claims for a at their national conference8, which postulated that variety of business activities including construction definitions of carbon neutral building can be and use of buildings. For more information, go to extended to include construction and temporary http://www.carbonneutral.com/. energy supplies, it is assumed that such factors are being weighed as the CaGBC works internally on City of Vancouver carbon neutrality. As part of its ambitious Greenest City 2020 initiative, Canadian Standards Association (CSA) the City of Vancouver has created targets involving Group carbon neutrality, including the achievement of carbon neutral operations by 2012 and all new 10 In an attempt to standardize claims of carbon buildings to be carbon neutral by 2030 . There is neutrality, the CSA Group has developed its no publicly available information on the City’s Registered Carbon Neutral™ Program, defining definition of a carbon neutral building, the carbon neutrality as “the achievement of zero net boundaries within which carbon neutrality will be greenhouse gas (GHG) emissions from a specified defined, or a specific standard or program to be organization or building. This is achieved by used for quantification, reporting and verification. measuring GHG emissions and then (for all However, based on the City’s participation in the emissions identified) offsetting them through the Towards Carbon Neutral Buildings in BC: retirement of an equivalent amount of qualifying Framework for High-Rise Multi-Unit Residential verified emissions reductions or removals. Carbon Buildings, we do know the City is working off an neutral is not the same as having zero emissions.” 9 assumption that carbon neutrality is achieved by The program does not define any specific scope for reducing building operating emissions by 50%, and calculation of emissions, nor is it linked to a specified then meeting the remaining demand with low carbon period of time. sources, and that the City is considering more aggressive targets for 2050, as well as the inclusion of embodied energy and occupant travel.

Province of British Columbia

The Province of British Columbia has set a goal of carbon neutral operations by 2012 and as early as of

June 2011, BC’s public sector achieved carbon 7 Canada Green Building Council. 2012 Strategic Plan: Second neutrality. According to the Province, “carbon Year of the CaGBC Strategic Plan 2011-2013 neutrality involves measuring operational 8 Canada Green Building Council, “Cutting Through the Hot Air: Carbon Neutral Buildings”, http://www.cagbc.org/source/Events/Event.cfm?EVENT=CN12TO 0611§ion=unknown 9 The CSA Group, “CSA Launches Carbon Neutral Program to Help Organizations and Building Owners Demonstrate Carbon 10 City of Vancouver, Home, , and Development: Green Neutrality”, http://www.csa.ca/cm/ca/en/news/article/csa- building and renovating, http://vancouver.ca/home-property- launches-carbon-neutral-program development/green-building-and-renovating.aspx

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What is a Carbon Neutral Building

greenhouse gas emissions, reducing those where Conclusion possible, offsetting the remainder and demonstrating leadership through public reporting.” 11 According to The existing variations in the definitions of carbon the Methodology for Reporting 2011 BC Public neutral building make it clear that there is a need for Sector Greenhouse Gas Emissions, scope 1 and 2 a more universal third-party standard for the emissions must be included in calculations. Scope concept. 3 is partially addressed through the inclusion of business travel, however travel of employees and In the absence of an international accepted visitors to the building is not included. Emissions definition, we recommend that any organization from embodied energy or the construction process defining carbon neutral building consider the are not considered. following:

Consistent with the UK DECC guidelines, the System Boundaries Province reports on the emissions reduced internally Is it merely operations that are being targeted? versus the amount of carbon offsets that have been Embodied energy? Occupant travel? Construction purchased in their “Carbon Neutral B.C. – activities? With respect to the Framework mentioned 12 Transforming B.C.’s Public Sector” report . For at the beginning of this white paper, the system quantification, reporting, and verification, the boundaries were set to be operational, with Province has developed its own standard, recommendations to shift longer-term to include SMARTTool that meets international standards such embodied energy and occupant travel. Such a shift 13 as those of The Climate Registry. is consistent with the Carbon Neutral Design Project and the UK’s DECC. It will be interesting to consider The Province has also created a crown corporation, the inclusion of construction activities in future. Pacific Carbon Trust, from which to acquire all its carbon offsets. These are sourced from projects in “Pinch Point” communities across BC that meet specific eligibility One common thread is the recognition that energy criteria as defined by the Ministry of Environment’s must be conserved to a pinch point, beyond which Offset Emissions Regulation, which align with the the remaining demand would be met with renewable DECC’s quality criteria14. Project documentation energy and/or carbon offsets. Defining that pinch and an offset registry are publicly available on the point should be based on primary energy demand; Pacific Carbon Trust website at: identifying the quantitative values seems to be both www.pacificcarbontrust.com. an art and a science. For example, each EU member state is developing its own targets, even though in some cases, common building typologies and climates exist. The Framework proposes some

targets for south coastal BC, based on the City of Vancouver’s informal goal of a 50% reduction in building energy, but also acknowledges that remaining demand is likely to be met with some low carbon versus no carbon sources for some time.

Verification / Certification Before the advent of certification systems such as 11 LiveSmart BC, Understanding Carbon Neutrality, LEED®, it was difficult to verify the validity of claims http://www.livesmartbc.ca/government/carbon_neutral/cng_backg round.html for ‘green building’. The same situation now exists 12 LiveSmart BC, “Carbon Neutral B.C. – Transforming B.C.’s in the realm of ‘carbon neutral’ building. Being clear Public Sector”, about system boundaries and having quantitative http://www.livesmartbc.ca/attachments/carbon_neutral_action_rep measures of energy performance, as well as orts/CarbonNeutralBC-transformingBCpublicsector.pdf 13 BC Ministry of Environment, “Methodology for Reporting 2011 renewable energy and offset use, will be critical. In BC Public Sector Greenhouse Gas Emissions”, addition, standard protocols for quantification, http://www.env.gov.bc.ca/cas/mitigation/pdfs/Methodology_for_Re reporting and verification need to be developed and porting_BC_Public_Sector_GHG_Emissions.pdf referenced that are specific to buildings. 14Minstry of Environment, “Offset Emissions Regulation”, http://www.env.gov.bc.ca/cas/mitigation/ggrta/pdf/offsets-reg.pdf

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What is a Carbon Neutral Building

Organizations such as the AIA, ASHRAE and the CaGBC have targeted 2030 for designing market- ready carbon neutral buildings. Given the CO2 levels we are seeing today, is that good enough?

For more information on developing policies and regulations for carbon neutral buildings, go to http://www.sustainablebuildingcentre.com/research/ and download our report: Towards Carbon Neutral Buildings in BC: Framework for High-Rise Multi-Unit Residential Buildings:

Helen Carruthers Project Manager helenc(at)lhsbc.com

Tracy Casavant Executive Director tracy(at)lhsbc.com

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